IDEAS home Printed from https://ideas.repec.org/a/kap/iaecre/v10y2004i1p16-2710.1007-bf02295574.html
   My bibliography  Save this article

Determinants of the rate of return on S&L assets: 1970–97

Author

Listed:
  • Richard Cebula

Abstract

This study identifies determinants of the rate of return on U.S. Saving and Loan (S&L) assets during the 1970–97 period. The Instrumental Variables (IV) estimation reveals that this rate of return is an increasing function of the spread between the S&L mortgage interest rate and the S&L cost of funds, the regulatory S&L capital-asset ratio, and the percentage growth rate of real GDP. It is negatively affected by the Tax Reform Act of 1986 and positively affected by the Federal Deposit Insurance Corporation Improvement Act of 1991. Based on these findings, certain policy implications and general conclusions are suggested. Copyright International Atlantic Economic Society 2004

Suggested Citation

  • Richard Cebula, 2004. "Determinants of the rate of return on S&L assets: 1970–97," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 10(1), pages 16-27, February.
    • Handle: RePEc:kap:iaecre:v:10:y:2004:i:1:p:16-27:10.1007/bf02295574
    DOI: 10.1007/BF02295574
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/BF02295574
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/BF02295574?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. J. H. Taggart & L. D. Jennings, 1934. "The Insurance of Bank Deposits," Journal of Political Economy, University of Chicago Press, vol. 42(4), pages 508-508.
    2. Gary C. Sanger & C. F. Sirmans & Geoffrey K. Turnbull, 1990. "The Effects of Tax Reform on Real Estate: Some Empirical Results," Land Economics, University of Wisconsin Press, vol. 66(4), pages 409-424.
    3. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    4. Cebula, Richard, 1993. "The Regional Distribution of Bank Closings in the United States: An Extension of the Amos Analysis," MPRA Paper 51488, University Library of Munich, Germany.
    5. James R. Barth, 1991. "The Great Savings and Loan Debacle," Books, American Enterprise Institute, number 918256, September.
    6. Ira Saltz, 1997. "Federal deposit insurance coverage and bank failures: A cointegration analysis with semi-annual data, 1965–91," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 21(3), pages 3-9, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Richard J. Cebula, 1996. "Geographic Differentials In The Rate Of Return On Savings And Loan Assets," The Review of Regional Studies, Southern Regional Science Association, vol. 26(1), pages 41-53, Summer.
    2. Richard J. Cebula, 2014. "Where Has The Currency Gone? And Why? The Underground Economy And Personal Income Tax Evasion In The U.S., 1970-2008," Review of Economic Analysis, Digital Initiatives at the University of Waterloo Library, vol. 6(1), pages 36-52, June.
    3. Richard J. Cebula, 2014. "The underground economy in the U.S.A.: preliminary new evidence on the impact of income tax rates (and other factors) on aggregate tax evasion 1975-2008," PSL Quarterly Review, Economia civile, vol. 67(271), pages 451-481.
    4. Richard J. Cebula, 1997. "The Rate Of Return On Savings And Loan Assets," Studies in Economics and Finance, Emerald Group Publishing Limited, vol. 17(2), pages 3-24, January.
    5. Guo, Lin, 2003. "Inferring market information from the price and quantity of S&L deposits," Journal of Banking & Finance, Elsevier, vol. 27(11), pages 2177-2202, November.
    6. Strahan, Philip E., 1995. "Asset returns and economic disasters evidence from the S&L crisis," Journal of Monetary Economics, Elsevier, vol. 36(1), pages 189-217, August.
    7. Cebula, Richard J., 2011. "Aggregate Income Tax Evasion: Empirical Results Using new IRS Data for the U.S. - L’evasione aggregata del reddito: risultati empirici ottenuti utilizzando i nuovi dati IRS per gli USA," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 64(4), pages 423-443.
    8. Feige, Edgar L. & Cebula, Richard, 2011. "America’s unreported economy: measuring the size, growth and determinants of income tax evasion in the U.S," MPRA Paper 34781, University Library of Munich, Germany.
    9. Cebula, Richard, 1992. "The Impact of Federal Deposit Insurance on Savings and Loan Failures," MPRA Paper 51540, University Library of Munich, Germany.
    10. Kenji Tsuji, 2015. "Bank Capital Regulation and Soft Budget Constraints," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 21(1), pages 33-40, March.
    11. Brewer, Elijah III & Jackson, William III & Mondschean, Thomas S., 1996. "Risk, regulation, and S & L diversification into nontraditional assets," Journal of Banking & Finance, Elsevier, vol. 20(4), pages 723-744, May.
    12. Goldberg, Lawrence G. & Hudgins, Sylvia C., 1996. "Response of uninsured depositors to impending S&L failures: Evidence of depositor discipline," The Quarterly Review of Economics and Finance, Elsevier, vol. 36(3), pages 311-325.
    13. Ira Saltz, 1997. "Federal deposit insurance coverage and bank failures: A cointegration analysis with semi-annual data, 1965–91," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 21(3), pages 3-9, September.
    14. Cebula, Richard, 2000. "Determinants of the Rate of Return on Commercial Bank Assets in the United States, 1959-1998," MPRA Paper 60006, University Library of Munich, Germany.
    15. Feige, Edgar L. & Cebula, Richard, 2011. "America’s Underground Economy: Measuring the Size, Growth and Determinants of Income Tax Evasion in the U.S," MPRA Paper 29672, University Library of Munich, Germany.
    16. Ira Saltz, 1997. "FDIC Coverage on bank failures: Cointegration analysis using annual data, 1942–91," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 3(1), pages 71-80, February.
    17. Richard J. Cebula, 2013. "New and Current Evidence on Determinants of Aggregate Federal Personal Income Tax Evasion in the United States," American Journal of Economics and Sociology, Wiley Blackwell, vol. 72(3), pages 701-731, July.
    18. Barth, James R. & Prabha, Apanard Penny, 2014. "An Analysis of Resolving Too-Big-to-Fail Banks Throughout the United States," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 44(1).
    19. Cebula, Richard, 1999. "Determinants of the Rate of Return on Commercial Bank Assets, 1933-1998," MPRA Paper 61414, University Library of Munich, Germany.
    20. Richard Cebula, 1999. "New evidence on determinants of bank failures in the US," Applied Economics Letters, Taylor & Francis Journals, vol. 6(1), pages 45-47.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:iaecre:v:10:y:2004:i:1:p:16-27:10.1007/bf02295574. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.